Mellanox Delivers Record Revenue for the Second Quarter of 2019

Achieves $310.3 million revenue, up 16% year-over-year

Trailing 12 months GAAP operating margin 14.4%; Non-GAAP operating margin 27.3%

SUNNYVALE, Calif. & YOKNEAM, Israel–(BUSINESS WIRE)–#Mellanox–Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center servers and storage systems, today announced preliminary financial results for its second quarter ended June 30, 2019.

“Mellanox delivered record revenue in Q2, achieving 2 percent sequential growth and 16 percent year-over-year growth. We continue to demonstrate leadership with our Ethernet adapter solutions for data rates of 25 gigabit per second and above. The growth in our Ethernet business reflects strong demand from our cloud customers as well as expanding channel sales. We are pleased that we’ve begun shipping 200 gigabit per second Ethernet adapters, switches, and cables to our data center customers, and expect this to be a future revenue growth driver,” said Eyal Waldman, president and CEO of Mellanox Technologies. “We continue to see strong demand for our InfiniBand products across the high performance computing, artificial intelligence, cloud, and storage market segments, driven by our highest throughput 200 gigabit HDR InfiniBand solutions. InfiniBand accelerates six of the top ten supercomputers in the world today, including the top three. We are proud that multiple HDR InfiniBand systems have entered the TOP500 supercomputers list, led by the Frontera TACC system, which is the fastest TOP500 supercomputer built in 2019 and premiered at #5 on the list.”

“We are pleased with our financial performance this quarter and the adoption of our latest 25, 50, and 100Gb/s Ethernet and 200Gb/s HDR InfiniBand products,” continued Waldman. “We expect to maintain and grow our leadership in these segments as we expand our footprint for both adapters and switches in the data center.”

Second Quarter 2019 – Highlights

  • Revenue of $310.3 million in the second quarter, an increase of 15.6 percent, compared to $268.5 million in the second quarter of 2018.
  • GAAP gross margins of 64.5 percent in the second quarter, compared to 61.4 percent in the second quarter of 2018.
  • Non-GAAP gross margins of 67.9 percent in the second quarter, compared to 69.1 percent in the second quarter of 2018.
  • GAAP operating income of $42.2 million in the second quarter, compared to $16.6 million in the second quarter of 2018.
  • Non-GAAP operating income of $84.7 million in the second quarter, or 27.3 percent of revenue, compared to $66.2 million, or 24.7 percent of revenue in the second quarter of 2018.
  • GAAP net income of $38.4 million in the second quarter, compared to $16.5 million in the second quarter of 2018.
  • Non-GAAP net income of $83.9 million in the second quarter, compared to $66.6 million in the second quarter of 2018.
  • GAAP net income per diluted share of $0.68 in the second quarter, compared to $0.30 in the second quarter of 2018.
  • Non-GAAP net income per diluted share of $1.52 in the second quarter, compared to $1.25 in the second quarter of 2018.
  • $58.6 million in cash provided by operating activities in the second quarter, compared to $46.7 million in the second quarter of 2018.
  • Cash and investments totaled $610.6 million at June 30, 2019, compared to $552.6 million at March 31, 2019.

Commentary regarding Mellanox Acquisition by NVIDIA

As announced on March 11, 2019, NVIDIA Corporation intends to acquire all the issued and outstanding common shares of Mellanox for $125 per share in cash. Due to the pending acquisition, Mellanox will not hold an earnings conference call and has suspended the practice of providing forward-looking guidance.

Recent Mellanox Press Release Highlights

July 8, 2019

 

Mellanox Capital Extends Storage Ecosystem with Investments in CNEX Labs and Pliops

June 18, 2019

 

Mellanox Liquid Cooled HDR 200G Multi-Host InfiniBand Adapters Accelerate Lenovo’s Most Advanced Liquid Cooled Server Platform

June 17, 2019

 

InfiniBand Accelerates Six of the Top Ten Supercomputers in the World, Including the Top Three, and Four of the Top Five on June’s TOP500

June 17, 2019

 

Mellanox HDR 200G InfiniBand Accelerates New Generation of World-Wide High-Performance Computing and Artificial Intelligence Supercomputers

June 5, 2019

 

Check Point Software Technologies Propels Mellanox Past One Million Ethernet Switch Ports

May 20, 2019

 

Mellanox Introduces Ethernet Cloud Fabric Technology based on the World’s Most Advanced 100/200/400GbE Open Ethernet Switches

May 15, 2019

 

Mellanox Capital Invests in Storage Leaders Excelero and WekaIO

May 13, 2019

 

Mellanox Introduces Advanced Network Telemetry Technology to Keep Your Business Up and Running

April 16, 2019

 

Mellanox Delivers Record Revenue for the First Quarter of 2019

About Mellanox

Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of end-to-end Ethernet and InfiniBand intelligent interconnect solutions and services for servers, storage, and hyper-converged infrastructure. Mellanox’s intelligent interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications, unlocking system performance and improving security. Mellanox offers a choice of high-performance solutions: network and multicore processors, network adapters, switches, cables, software and silicon, that accelerate application runtime and maximize business results for a wide range of markets including high performance computing, enterprise data centers, cloud, storage, cyber security, telecom and financial services. More information is available at: www.mellanox.com.

Mellanox has achieved and maintained the highest ISS Quality Score possible beginning in May of 2017 and through the date of this release, July 24, 2019.

GAAP to Non-GAAP Reconciliation

To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Mellanox uses non-GAAP measures of net income which are adjusted from results based on GAAP to exclude share-based compensation expense, amortization expense of acquired intangible assets, settlement costs, acquisition and other charges, restructuring and impairment charges, gain on investments in privately-held companies, non-operating foreign exchange gains and losses, and income tax effects and adjustments. Settlement costs represent the charges related to the settlement of a contingent royalty obligation. Acquisition and other charges include expenses related to acquisitions of other companies, expenses related to the proxy contest, and expenses related to the pending acquisition of Mellanox by NVIDIA. Restructuring and impairment charges include impairment charges related to our investment in privately-held companies, as well as costs that are the result of restructuring, consisting of employee termination and severance costs, facilities related costs, contract cancellation charges, and impairment of long-lived assets. Gain on investments in privately-held companies represents the realized and unrealized gain related to our private company investees. Non-operating foreign exchange gains and losses include the gains and losses as a result of remeasuring our balance sheet items denominated in foreign currencies and the gains and losses associated with the related hedging instruments. The purpose of income tax effects and adjustments is to exclude tax consequences associated with the above excluded expense items, the non-cash impact on the tax provision pertaining to changes in deferred tax assets associated with carryforward losses, and reversals of valuation allowances. The company believes the non-GAAP results provide useful information to both management and investors, as these non-GAAP results exclude expenses that are not indicative of our core operating results. Management believes it is useful to exclude share-based compensation expense, amortization expense of acquired intangible assets, settlement costs, acquisition and other charges, restructuring and impairment charges, gain on investments in privately-held companies, non-operating foreign exchange gains and losses, and income tax effects and adjustments because it enhances investors’ ability to understand our business from the same perspective as management, which believes that such items are not directly attributable to nor reflect the underlying performance of the company’s business operations. Further, management believes certain non-cash charges such as share-based compensation, amortization of acquired intangible assets, impairment charges, changes related to the utilization of deferred taxes and the net impact on the company’s tax provision for non-GAAP adjustments do not reflect the cash operating results of the business. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. These non-GAAP measures may be different than the non-GAAP measures used by other companies. A reconciliation of GAAP to non-GAAP condensed consolidated statements of operations is also presented in the financial statements portion of this release and is posted under the “Investor Relations” section on our website.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements, statements related to trends in the market for our solutions and services, opportunities for our company in 2019 and beyond, future product capabilities and the acquisition of Mellanox by NVIDIA. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management’s beliefs and certain assumptions made by us, all of which are subject to change.

Forward-looking statements can often be identified by words such as “projects,” “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include the continued expansion of our product line, customer base and the total available market of our products, the continued growth in demand for our products, the continued, increased demand for industry standards-based technology, our ability to react to trends and challenges in our business and the markets in which we operate, our ability to anticipate market needs or develop new or enhanced products to meet those needs, the adoption rate of our products, our ability to establish and maintain successful relationships with our OEM partners, our ability to effectively compete in our industry, fluctuations in demand, sales cycles and prices for our products and services, our success converting design wins to revenue-generating product shipments, the continued launch and volume ramp of large customer sales opportunities, our ability to protect our intellectual property rights, our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses, our success in realizing the anticipated benefits of mergers and acquisitions, and our ability to obtain debt at competitive rates or in sufficient amounts in order to fund our contractual commitments. Furthermore, the majority of our quarterly revenue are derived from customer orders received and fulfilled in the same quarterly period. We have limited visibility into actual end-user demand as such demand impacts us and our OEM customer inventory balances in any given quarter. Consequently, this introduces risk and uncertainty into our revenue and production forecasts and business planning and could negatively impact our financial results. In addition, current uncertainty in the global economic environment poses a risk to the overall economy as businesses may defer purchases in response to tighter credit conditions, changing overall demand for our products, and negative financial news. Consequently, our results could differ materially from our prior results due to these general economic and market conditions, political events and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. Additionally, there are risks, uncertainties and assumptions in connection with the proposed transaction with NVIDIA including, (i) the risk that the proposed transaction may not be completed in a timely manner or at all, which may adversely affect Mellanox’s business and the price of the ordinary shares of Mellanox, (ii) the failure to satisfy any of the conditions to the consummation of the proposed transaction, including the approval of the merger agreement by the shareholders of Mellanox and the receipt of certain governmental and regulatory approvals, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, (iv) the effect of the announcement or pendency of the proposed transaction on Mellanox’s business relationships, operating results and business generally, (v) risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction, (vi) risks related to diverting management’s attention from Mellanox’s ongoing business operations (vii) the outcome of any legal proceedings that may be instituted against us related to the merger agreement or the proposed transaction; and (viii) unexpected costs, charges or expenses resulting from the proposed transaction.

More information about the risks, uncertainties and assumptions that may impact our business is set forth in our annual report on Form 10-K filed with the SEC on February 22, 2019. All forward-looking statements in this press release, are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Amounts reported in this release are preliminary and subject to finalization prior to the filing of our next Quarterly Report on Form 10-Q.

Mellanox is a registered trademark of Mellanox Technologies, Ltd. All other trademarks are property of their respective owners.

Mellanox Technologies, Ltd.

Condensed Consolidated Statements of Operations

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six months ended June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

Total revenues

 

$

310,324

 

 

$

268,462

 

 

$

615,541

 

 

$

519,462

 

Cost of revenues

 

110,034

 

 

103,668

 

 

218,120

 

 

192,666

 

Gross profit

 

200,290

 

 

164,794

 

 

397,421

 

 

326,796

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

99,329

 

 

87,152

 

 

191,534

 

 

173,578

 

Sales and marketing

 

39,302

 

 

35,673

 

 

79,399

 

 

75,167

 

General and administrative

 

19,199

 

 

23,635

 

 

38,470

 

 

40,151

 

Restructuring and impairment charges

 

275

 

 

1,774

 

 

1,178

 

 

9,361

 

Total operating expenses

 

158,105

 

 

148,234

 

 

310,581

 

 

298,257

 

Income from operations

 

42,185

 

 

16,560

 

 

86,840

 

 

28,539

 

Interest and other, net

 

2,268

 

 

(338

)

 

10,499

 

 

(871

)

Income before taxes on income

 

44,453

 

 

16,222

 

 

97,339

 

 

27,668

 

Provision for (benefit from) taxes on income

 

6,024

 

 

(304

)

 

10,290

 

 

(26,701

)

Net income

 

$

38,429

 

 

$

16,526

 

 

$

87,049

 

 

$

54,369

 

Net income per share — basic

 

$

0.70

 

 

$

0.31

 

 

$

1.60

 

 

$

1.04

 

Net income per share — diluted

 

$

0.68

 

 

$

0.30

 

 

$

1.55

 

 

$

1.00

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

Basic

 

54,707

 

 

52,615

 

 

54,469

 

 

52,219

 

Diluted

 

56,480

 

 

54,466

 

 

56,180

 

 

54,149

 

Mellanox Technologies, Ltd.

Reconciliation of Non-GAAP Adjustments

(in thousands, except percentages, unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

Reconciliation of GAAP net income to non-GAAP:

 

 

 

 

 

 

 

GAAP net income

$

38,429

 

 

$

16,526

 

 

$

87,049

 

 

$

54,369

 

Adjustments:

 

 

 

 

 

 

 

Share-based compensation expense:

 

 

 

 

 

 

 

Cost of revenues

829

 

 

415

 

 

1,513

 

 

826

 

Research and development

14,486

 

 

8,340

 

 

27,727

 

 

16,514

 

Sales and marketing

6,504

 

 

3,646

 

 

12,156

 

 

7,245

 

General and administrative

5,130

 

 

2,515

 

 

9,795

 

 

5,305

 

Total share-based compensation expense

26,949

 

 

14,916

 

 

51,191

 

 

29,890

 

Amortization of acquired intangibles:

 

 

 

 

 

 

 

Cost of revenues

9,735

 

 

11,106

 

 

19,444

 

 

21,988

 

Research and development

194

 

 

194

 

 

386

 

 

386

 

Sales and marketing

1,567

 

 

2,033

 

 

3,410

 

 

4,263

 

Total amortization of acquired intangibles

11,496

 

 

13,333

 

 

23,240

 

 

26,637

 

Settlement costs:

 

 

 

 

 

 

 

Cost of revenues

 

 

9,161

 

 

 

 

9,161

 

Total settlement costs

 

 

9,161

 

 

 

 

9,161

 

Acquisition and other charges:

 

 

 

 

 

 

 

Research and development

231

 

 

88

 

 

321

 

 

375

 

Sales and marketing

108

 

 

48

 

 

138

 

 

208

 

General and administrative

3,434

 

 

10,366

 

 

8,088

 

 

14,197

 

Total acquisition and other charges

3,773

 

 

10,502

 

 

8,547

 

 

14,780

 

Restructuring and impairment charges:

 

 

 

 

 

 

 

Operating expense

275

 

 

1,774

 

 

1,178

 

 

9,361

 

Interest and other, net

 

 

 

 

1,755

 

 

 

Total restructuring and impairment charges

275

 

 

1,774

 

 

2,933

 

 

9,361

 

Gain on investments in privately-held companies:

 

 

 

 

 

 

 

Interest and other, net

(441

)

 

 

 

(9,569

)

 

 

Non-operating foreign exchange loss:

 

 

 

 

 

 

 

Interest and other, net

1,800

 

 

 

 

4,052

 

 

 

Tax effects and adjustments

1,573

 

 

366

 

 

2,933

 

 

(26,237

)

Non-GAAP net income

$

83,854

 

 

$

66,578

 

 

$

170,376

 

 

$

117,961

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP gross profit to non-GAAP:

 

 

 

 

 

 

 

Revenues

$

310,324

 

 

$

268,462

 

 

$

615,541

 

 

$

519,462

 

GAAP gross profit

200,290

 

 

164,794

 

 

397,421

 

 

326,796

 

GAAP gross margin

64.5

%

 

61.4

%

 

64.6

%

 

62.9

%

Share-based compensation expense

829

 

 

415

 

 

1,513

 

 

826

 

Amortization of acquired intangibles

9,735

 

 

11,106

 

 

19,444

 

 

21,988

 

Settlement costs

 

 

9,161

 

 

 

 

9,161

 

Non-GAAP gross profit

$

210,854

 

 

$

185,476

 

 

$

418,378

 

 

$

358,771

 

Non-GAAP gross margin

67.9

%

 

69.1

%

 

68.0

%

 

69.1

%

Mellanox Technologies, Ltd.

Reconciliation of Non-GAAP Adjustments

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

Reconciliation of GAAP operating expenses to non-GAAP:

 

 

 

 

 

 

 

GAAP operating expenses

$

158,105

 

 

$

148,234

 

 

$

310,581

 

 

$

298,257

 

Share-based compensation expense

(26,120

)

 

(14,501

)

 

(49,678

)

 

(29,064

)

Amortization of acquired intangibles

(1,761

)

 

(2,227

)

 

(3,796

)

 

(4,649

)

Acquisition and other charges

(3,773

)

 

(10,502

)

 

(8,547

)

 

(14,780

)

Restructuring and impairment charges

(275

)

 

(1,774

)

 

(1,178

)

 

(9,361

)

Non-GAAP operating expenses

$

126,176

 

 

$

119,230

 

 

$

247,382

 

 

$

240,403

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP income from operations to non-GAAP:

 

 

 

 

 

 

 

GAAP income from operations

$

42,185

 

 

$

16,560

 

 

$

86,840

 

 

$

28,539

 

GAAP income from operations %

13.6

%

 

6.2

%

 

14.1

%

 

5.5

%

Share-based compensation expense

26,949

 

 

14,916

 

 

51,191

 

 

29,890

 

Settlement costs

 

 

9,161

 

 

 

 

9,161

 

Amortization of acquired intangibles

11,496

 

 

13,333

 

 

23,240

 

 

26,637

 

Acquisition and other charges

3,773

 

 

10,502

 

 

8,547

 

 

14,780

 

Restructuring charges

275

 

 

1,774

 

 

1,178

 

 

9,361

 

Non-GAAP income from operations

$

84,678

 

 

$

66,246

 

 

$

170,996

 

 

$

118,368

 

Non-GAAP income from operations %

27.3

%

 

24.7

%

 

27.8

%

 

22.8

%

 

 

 

 

 

 

 

 

Shares used in computing GAAP diluted earnings per share

56,480

 

 

54,466

 

 

56,180

 

 

54,149

 

Adjustments:

 

 

 

 

 

 

 

Effect of dilutive securities under GAAP

(1,773

)

 

(1,851

)

 

(1,711

)

 

(1,930

)

Total options vested and exercisable

293

 

 

600

 

 

293

 

 

600

 

Shares used in computing non-GAAP diluted earnings per share

55,000

 

 

53,215

 

 

54,762

 

 

52,819

 

 

 

 

 

 

 

 

 

GAAP diluted net income per share

$

0.68

 

 

$

0.30

 

 

$

1.55

 

 

$

1.00

 

Adjustments:

 

 

 

 

 

 

 

Share-based compensation expense

0.48

 

 

0.28

 

 

0.92

 

 

0.55

 

Amortization of acquired intangibles

0.20

 

 

0.24

 

 

0.41

 

 

0.49

 

Settlement costs

 

 

0.17

 

 

 

 

0.17

 

Acquisition and other charges

0.07

 

 

0.19

 

 

0.15

 

 

0.27

 

Restructuring and impairment charges

 

 

0.03

 

 

0.05

 

 

0.17

 

Gain on investments in privately-held companies:

(0.01

)

 

 

 

(0.17

)

 

 

Non-operating foreign exchange loss

0.03

 

 

 

 

0.07

 

 

 

Tax effects and adjustments

0.03

 

 

0.01

 

 

0.05

 

 

(0.48

)

Effect of dilutive securities under GAAP

0.05

 

 

0.04

 

 

0.10

 

 

0.08

 

Total options vested and exercisable

(0.01

)

 

(0.01

)

 

(0.02

)

 

(0.02

)

Non-GAAP diluted net income per share

$

1.52

 

 

$

1.25

 

 

$

3.11

 

 

$

2.23

 

Mellanox Technologies, Ltd.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

 

 

June 30,

 

December 31,

 

 

2019

 

2018

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

53,782

 

 

$

56,766

 

Short-term investments

 

556,806

 

 

381,724

 

Accounts receivable, net

 

200,351

 

 

150,625

 

Inventories

 

89,650

 

 

104,381

 

Other current assets

 

20,895

 

 

16,942

 

Total current assets

 

921,484

 

 

710,438

 

Property and equipment, net

 

108,142

 

 

105,334

 

Intangible assets, net

 

159,046

 

 

179,328

 

Goodwill

 

473,916

 

 

473,916

 

Other long-term assets

 

159,520

 

 

118,182

 

Total assets

 

$

1,822,108

 

 

$

1,587,198

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

73,790

 

 

$

70,336

 

Accrued and other liabilities

 

142,246

 

 

121,878

 

Deferred revenue

 

22,998

 

 

20,558

 

Total current liabilities

 

239,034

 

 

212,772

 

Deferred revenue, long-term

 

20,224

 

 

18,665

 

Other long-term liabilities

 

100,093

 

 

54,113

 

Total liabilities

 

359,351

 

 

285,550

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Ordinary shares

 

237

 

 

233

 

Additional paid-in capital

 

1,051,985

 

 

982,677

 

Accumulated other comprehensive income (loss)

 

2,394

 

 

(1,051

)

Retained earnings

 

408,141

 

 

319,789

 

Total shareholders’ equity

 

1,462,757

 

 

1,301,648

 

Total liabilities and shareholders’ equity

 

$

1,822,108

 

 

$

1,587,198

 

Mellanox Technologies, Ltd.

Condensed Consolidated Statement of Cash Flows

(in thousands, unaudited)

 

 

Six months ended June 30,

 

 

2019

 

2018

 

 

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

87,049

 

 

$

54,369

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

47,449

 

 

52,674

 

Deferred income taxes

 

 

 

(28,085

)

Share-based compensation

 

51,191

 

 

29,890

 

Gain on short-term investments, net

 

(6,558

)

 

(1,828

)

Gain on investments in privately-held companies

 

(9,569

)

 

 

Impairment charges

 

2,843

 

 

1,567

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

(49,726

)

 

(1,451

)

Inventories

 

11,800

 

 

(30,598

)

Prepaid expenses and other assets

 

4,047

 

 

718

 

Accounts payable

 

1,969

 

 

12,530

 

Accrued and other liabilities

 

6,509

 

 

12,334

 

Net cash provided by operating activities

 

147,004

 

 

102,120

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchase of short-term investments

 

(364,777

)

 

(82,486

)

Proceeds from sales and maturities of short-term investments

 

198,221

 

 

76,289

 

Proceeds from sale of an investment in a privately-held company

 

16,887

 

 

 

Proceeds from sales of property and equipment

 

 

 

3,239

 

Purchase of property and equipment

 

(15,208

)

 

(20,078

)

Purchase of intangibles and other assets

 

(2,850

)

 

(6,995

)

Purchase of investments in privately-held companies

 

(4,247

)

 

(6,000

)

Acquisition, net of cash acquired

 

 

 

(7,129

)

Net cash used in investing activities

 

(171,974

)

 

(43,160

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Principal payments on term debt

 

 

 

(74,000

)

Payments on intangible asset financings

 

(4,019

)

 

(3,446

)

Proceeds from issuances of ordinary shares through employee equity incentive plans and employee share purchase plan

 

18,121

 

 

19,341

 

Net cash provided by (used in) financing activities

 

14,102

 

 

(58,105

)

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(10,868

)

 

855

 

Cash, cash equivalents, and restricted cash at beginning of period

 

64,650

 

 

70,498

 

Cash, cash equivalents, and restricted cash at end of period

 

$

53,782

 

 

$

71,353

 

Contacts

Mellanox Technologies, Ltd.


Press/Media Contact

Greg Cross

Zonic Public Relations

+1-925-413-5327

gcross@zonicgroup.com

Investor Contact

ir@mellanox.com

Israel PR Contact

Jonathan Wolf

JWPR Public Relations and Communications

+972-54-22-094-22

yoni@jwpr.co.il

Israel IR Contact

Emanuel Kahana

Gelbart Kahana Investor Relations

+972-3-607-47-17

mano@gk-biz.com

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